Tax Finalization for Employees: What Businesses Need to Know

Tax Finalization for Employees: What Businesses Need to Know

October 1, 2021

A thorough understanding of the personal income tax finalization process, as well as the selection of the best-outsourced tax finalization service, enables businesses to be more efficient in tax finalization, while also ensure compliance with the law.

Tax Finalization for Employees: What Businesses Need to Know
Using outsourced tax finalization services from companies like Talentnet relieves stress and saves time.

Using outsourced tax finalization services from companies like Talentnet relieves stress and saves time.

A general note on personal income tax finalization

According to current regulations, businesses must deduct personal income tax before paying wages to employees, declare and pay that tax amount to tax authorities, and then proceed to do tax finalization on their employees’ behalf. For this process to be successful, businesses must understand the relevant procedures as well as determine which individuals can authorize businesses to complete tax finalization.

Employees who are eligible and able to authorize the company to finalize their personal income tax include:

  • Individuals who have earned income from a business for three months or more and are still working at that business at the time of authorization for tax finalization.
  • Individuals are employees transferred from the old company to the new company as a result of the merger, consolidation, division, separation, or transformation of the old company and the new company in the same company system.
  • Individuals earning wages sign a labor contract of three months or more with one company and have other incomes with an average monthly income of less than ten million VND per year and receive a 10% tax deduction from other employers (if there is no request, the business will not do tax finalization on these incomes of the employee).
  • Employers must ensure that employees’ taxable income and benefits are fully declared at the time they are incurred.
  • Employees’ personal income tax finalization dossiers should be prepared. Businesses must ensure that employees have a tax identification number during the application process; if they do not, they must register for one before tax finalization. The authorization form for personal income tax finalization, signed by the employee, should be sent to the company. Employee dependents’ information has also been fully and successfully registered with the tax authorities.
  • Submit the personal income tax finalization dossier and pay outstanding taxes (if any) in accordance with the law’s deadlines and regulations.

What are the advantages of using outsourced tax settlement services?

Personal income tax preparation is an important part of human resource management, and it is usually done at the beginning of the year. The internal human resources department is frequently extremely busy at this time because it has to complete many tasks for employees at the same time: tax finalization, salary calculation, Tet bonus, year-end bonus, and so on.

Using outsourced tax finalization services from companies like Talentnet relieves stress and saves time and human resources by actively coordinating with the business’s HR and accounting departments to check and compare documents. Furthermore, thanks to highly qualified personnel from these services, the tax finalization process of enterprises is always ensured to comply with laws and regulations. This not only ensures that the tax is finalized accurately and on time, but it also allows businesses to collaborate with administrative agencies to resolve any issues that may arise.

Talentnet Corporation

Let's talk

Let's talk
Added to cart
CEO Chat: Aligning Tech & People for Sustainable Growth Package: Early bird View cart
Unable to add more items. Your cart can only proceed with 01 single item.
Your cart is empty. Please add new items to continue!